Most US stocks were on the green as Nasdaq won and improved risk-on sentiment amid Nvidia-related news.
The restrictions on tariffs and trade war remain, but changing investors' sentiment made the US key indicators higher on Tuesday, but the Dow Jones industrial average fell 0.3%, the S&P 500 added 0.21% and the NASDAQ outperformed by 0.65% move.
Tech stocks have made money as traders responded to news around Nvidia. In particular, NVDA stocks rose 5% in pre-market trading as chipmakers reported breakthroughs in their quest to resume sales of AI chips from China.
read more: Despite tariff hikes in the EU and Mexico, Dow Jones are high
US inflation data
Inventory was also supported by the release of key inflation data. According to the Bureau of Labor Statistics, the U.S. consumer price index rose 0.3% a month in June, up 2.7% from the previous year. In comparison, consumer prices rose 0.1% in May.
Data from the Bureau of Labor Statistics shows that consumer prices exceeded the 2.4% seen in May, and 2.6% of economists had forecast. Meanwhile, core prices rose 0.2% in June, exceeding the 0.1% seen in May. However, the Core CPI in June was below the 0.1% recorded in May.
“Both the stock and bond markets responded positively to US CPI data in June, which is roughly aligned with consensus forecasts or slightly softer,” said Mohamed El Elian, president of Queens University in Cambridge.
He added via X:
“Those numbers will undoubtedly bolster the administration's pressure on the Federal Reserve to lower interest rates as early as this month, but given the criteria for restarting fee-cutting cycles that are different from the ECB and the Bank of England, it's unlikely to shake up most Fed officials this year.”
Elsewhere, they have begun reporting results from their second quarter results, including JPMorgan (JPM), Citigroup (C), and Wells Fargo (WFC). JPMorgan's second quarter results were better than expected, for example. The investment banking giant's revenues rose to $2.5 billion, up 8% from the second quarter.
Investors will also focus on revenue results for Goldman Sachs, Johnson & Johnson, United Airlines, Netflix, Morgan Stanley and Bank of America.
read more: Here's why stocks and crypto markets rose after US inflation data
